The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8331

                            I N  S E N A T E

                              May 13, 2020
                               ___________

Introduced  by  Sen.  O'MARA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation  to  authorizing  the  city  of
  Ithaca to establish hotel and motel taxes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section  1202-gg  to
read as follows:
  §  1202-GG.  HOTEL OR MOTEL TAXES IN THE CITY OF ITHACA.  (1) NOTWITH-
STANDING ANY OTHER PROVISIONS OF LAW TO THE CONTRARY, THE CITY OF  ITHA-
CA,    TOMPKINS  COUNTY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND
AMEND LOCAL LAWS IMPOSING IN SUCH CITY A TAX, IN ADDITION TO  ANY  OTHER
TAX AUTHORIZED AND IMPOSED PURSUANT TO THIS ARTICLE SUCH AS THE LEGISLA-
TURE  HAS  OR  WOULD HAVE THE POWER AND AUTHORITY TO IMPOSE UPON PERSONS
OCCUPYING HOTEL OR MOTEL ROOMS IN SUCH CITY. FOR THE  PURPOSES  OF  THIS
SECTION, THE TERM "HOTEL" OR "MOTEL" SHALL MEAN AND INCLUDE ANY FACILITY
PROVIDING  LODGING ON AN OVERNIGHT BASIS AND SHALL INCLUDE THOSE FACILI-
TIES DESIGNATED AND COMMONLY KNOWN AS "BED AND BREAKFAST" AND  "TOURIST"
FACILITIES.
  THE  RATES  OF  SUCH TAX SHALL NOT EXCEED FIVE PERCENT OF THE PER DIEM
RENTAL RATE FOR EACH ROOM, PROVIDED HOWEVER, THAT SUCH TAX SHALL NOT  BE
APPLICABLE  TO  A  PERMANENT  RESIDENT  OF  A  HOTEL OR MOTEL.   FOR THE
PURPOSES OF THIS SECTION THE TERM  "PERMANENT  RESIDENT"  SHALL  MEAN  A
PERSON  OCCUPYING  ANY  ROOM  OR  ROOMS IN A HOTEL OR MOTEL FOR AT LEAST
THIRTY CONSECUTIVE DAYS.
  (2) SUCH TAX MAY BE COLLECTED AND ADMINISTERED  BY  THE  CHIEF  FISCAL
OFFICER  OF THE CITY OF ITHACA BY SUCH MEANS AND IN SUCH MANNER AS OTHER
TAXES WHICH ARE NOW COLLECTED AND ADMINISTERED BY  SUCH  OFFICER  OR  AS
OTHERWISE MAY BE PROVIDED BY SUCH LOCAL LAW.
  (3)  SUCH LOCAL LAWS MAY PROVIDE THAT ANY TAX IMPOSED SHALL BE PAID BY
THE PERSON LIABLE THEREFOR TO THE OWNER OF THE HOTEL OR MOTEL ROOM OCCU-
PIED OR TO THE PERSON ENTITLED TO BE PAID THE RENT  OR  CHARGE  FOR  THE
HOTEL  OR  MOTEL  ROOM OCCUPIED FOR AND ON ACCOUNT OF THE CITY OF ITHACA

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD15769-02-0

S. 8331                             2

IMPOSING THE TAX AND THAT SUCH OWNER OR PERSON ENTITLED TO BE  PAID  THE
RENT  OR  CHARGE  SHALL  BE LIABLE FOR THE COLLECTION AND PAYMENT OF THE
TAX; AND THAT SUCH OWNER OR PERSON ENTITLED  TO  BE  PAID  THE  RENT  OR
CHARGE  SHALL  HAVE THE SAME RIGHT IN RESPECT TO COLLECTING THE TAX FROM
THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, OR IN RESPECT  TO  NONPAY-
MENT  OF  THE TAX BY THE PERSON OCCUPYING THE HOTEL OR MOTEL ROOM, AS IF
THE TAX WERE A PART OF THE RENT OR CHARGE AND PAYABLE AT THE  SAME  TIME
AS  THE RENT OR CHARGE; PROVIDED, HOWEVER, THAT THE CHIEF FISCAL OFFICER
OF THE CITY, SPECIFIED IN SUCH LOCAL LAW, SHALL BE JOINED AS A PARTY  IN
ANY  ACTION  OR PROCEEDING BROUGHT TO COLLECT THE TAX BY THE OWNER OR BY
THE PERSON ENTITLED TO BE PAID THE RENT OR CHARGE.
  (4) SUCH LOCAL LAWS MAY PROVIDE FOR THE  FILING  OF  RETURNS  AND  THE
PAYMENT  OF  THE TAX ON A MONTHLY BASIS OR ON THE BASIS OF ANY LONGER OR
SHORTER PERIOD OF TIME.
  (5) THIS SECTION SHALL NOT AUTHORIZE THE IMPOSITION OF SUCH  TAX  UPON
ANY  TRANSACTION,  BY  OR  WITH  ANY OF THE FOLLOWING IN ACCORDANCE WITH
SECTION TWELVE HUNDRED THIRTY OF THIS ARTICLE:
  A. THE STATE OF NEW YORK,  OR  ANY  PUBLIC  CORPORATION  (INCLUDING  A
PUBLIC CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER
STATE  OR  THE  DOMINION OF CANADA), IMPROVEMENT DISTRICT OR OTHER POLI-
TICAL SUBDIVISION OF THE STATE;
  B. THE UNITED STATES OF AMERICA, INSOFAR AS IT IS  IMMUNE  FROM  TAXA-
TION;
  C.  ANY CORPORATION OR ASSOCIATION, OR TRUST, OR COMMUNITY CHEST, FUND
OR FOUNDATION ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITA-
BLE OR EDUCATIONAL PURPOSES, OR FOR THE PREVENTION OF CRUELTY  TO  CHIL-
DREN  OR ANIMALS, AND NO PART OF THE NET EARNINGS OF WHICH INURES TO THE
BENEFIT OF ANY PRIVATE SHAREHOLDER OR INDIVIDUAL AND NO SUBSTANTIAL PART
OF THE ACTIVITIES OF WHICH  IS  CARRYING  ON  PROPAGANDA,  OR  OTHERWISE
ATTEMPTING  TO INFLUENCE LEGISLATION; PROVIDED, HOWEVER, THAT NOTHING IN
THIS PARAGRAPH SHALL INCLUDE AN ORGANIZATION OPERATED  FOR  THE  PRIMARY
PURPOSE  OF  CARRYING  ON A TRADE OR BUSINESS FOR PROFIT, WHETHER OR NOT
ALL OF ITS PROFITS ARE PAYABLE TO ONE OR MORE ORGANIZATIONS DESCRIBED IN
THIS PARAGRAPH.
  (6) ANY FINAL DETERMINATION OF THE AMOUNT OF ANY TAX PAYABLE  PURSUANT
TO THIS SECTION SHALL BE REVIEWABLE FOR ERROR, ILLEGALITY OR UNCONSTITU-
TIONALITY  OR  ANY OTHER REASON WHATSOEVER BY A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION  THERE-
FOR  IS MADE TO THE SUPREME COURT WITHIN THIRTY DAYS AFTER THE GIVING OF
THE NOTICE OF SUCH FINAL DETERMINATION, PROVIDED, HOWEVER, THAT ANY SUCH
PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW  AND
RULES SHALL NOT BE INSTITUTED UNLESS:
  A. THE AMOUNT OF ANY TAX SOUGHT TO BE REVIEWED, WITH SUCH INTEREST AND
PENALTIES  THEREON  AS  MAY  BE  PROVIDED FOR BY LOCAL LAW OR REGULATION
SHALL BE FIRST DEPOSITED AND THERE IS FILED AN UNDERTAKING, ISSUED BY  A
SURETY  COMPANY  AUTHORIZED  TO  TRANSACT  BUSINESS  IN  THIS  STATE AND
APPROVED BY THE SUPERINTENDENT OF FINANCIAL SERVICES OF THIS STATE AS TO
SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT AS A JUSTICE OF THE  SUPREME
COURT  SHALL  APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED
OR THE TAX CONFIRMED THE PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH
MAY ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING; OR
  B. AT THE OPTION OF THE PETITIONER SUCH UNDERTAKING MAY BE  IN  A  SUM
SUFFICIENT  TO  COVER  THE TAXES, INTERESTS AND PENALTIES STATED IN SUCH
DETERMINATION PLUS THE COSTS AND CHARGES WHICH MAY ACCRUE AGAINST IT  IN
THE  PROSECUTION  OF THE PROCEEDING, IN WHICH EVENT THE PETITIONER SHALL

S. 8331                             3

NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENALTIES AS A  CONDITION
PRECEDENT TO THE APPLICATION.
  (7)  WHERE  ANY  TAX  IMPOSED PURSUANT TO THIS SECTION SHALL HAVE BEEN
ERRONEOUSLY, ILLEGALLY OR UNCONSTITUTIONALLY COLLECTED  AND  APPLICATION
FOR  THE  REFUND THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR OFFI-
CERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE A DETERMINATION DENY-
ING SUCH REFUND, SUCH DETERMINATION SHALL BE REVIEWABLE BY A  PROCEEDING
UNDER  ARTICLE  SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE  LAW  AND RULES,
PROVIDED, HOWEVER, THAT SUCH PROCEEDING IS INSTITUTED WITHIN THIRTY DAYS
AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL,  THAT  A  FINAL  DETERMI-
NATION  OF  TAX  DUE WAS NOT PREVIOUSLY MADE, AND THAT AN UNDERTAKING IS
FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN SUCH AMOUNT AND WITH
SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT  SHALL  APPROVE  TO  THE
EFFECT  THAT  IF  SUCH PROCEEDING BE DISMISSED OR THE TAX CONFIRMED, THE
PETITIONER WILL PAY ALL COSTS AND CHARGES WHICH MAY ACCRUE IN THE PROSE-
CUTION OF SUCH PROCEEDING.
  (8) EXCEPT IN THE CASE OF A WILFULLY FALSE OR FRAUDULENT  RETURN  WITH
INTENT  TO  EVADE THE TAX, NO ASSESSMENT OF ADDITIONAL TAX SHALL BE MADE
AFTER THE EXPIRATION OF MORE THAN THREE  YEARS  FROM  THE  DATE  OF  THE
FILING  OF  A  RETURN,  PROVIDED, HOWEVER, THAT WHERE NO RETURN HAS BEEN
FILED AS PROVIDED BY LAW THE TAX MAY BE ASSESSED AT ANY TIME.
  (9) ALL REVENUES RESULTING FROM THE IMPOSITION OF THE  TAX  UNDER  THE
LOCAL  LAWS  SHALL  BE  PAID INTO THE TREASURY OF THE CITY OF ITHACA AND
SHALL BE CREDITED TO AND DEPOSITED IN THE GENERAL FUND OF THE CITY.  THE
CITY SHALL BE AUTHORIZED TO RETAIN THE NECESSARY REVENUE, IN  AN  AMOUNT
NOT TO EXCEED FOUR PERCENT OF THE TOTAL REVENUE, TO DEFER THE EXPENSE OF
THE  CITY  IN  ADMINISTERING  SUCH  TAX AND THE BALANCE OF SUCH REVENUES
SHALL BE ALLOCATED TO THE CONSTRUCTION, PROMOTION, MAINTENANCE,  CAPITAL
IMPROVEMENTS, AND OPERATIONS OF A CONFERENCE CENTER IN THE CITY OF ITHA-
CA  AND  OTHER DIRECTLY RELATED AND SUPPORTING ACTIVITIES, INCLUDING ALL
FINANCIAL COSTS AND OBLIGATIONS INCURRED BY  THE  CITY  RELATED  TO  THE
CREATION OF SUCH CONFERENCE CENTER.
  (10)  IF  ANY  PROVISION OF THIS SECTION OR THE APPLICATION THEREOF TO
ANY PERSON OR CIRCUMSTANCE SHALL BE HELD INVALID, THE REMAINDER OF  THIS
SECTION  AND  THE  APPLICATION  OF  SUCH  PROVISION  TO OTHER PERSONS OR
CIRCUMSTANCES SHALL NOT BE AFFECTED THEREBY.
  (11) EACH ENACTMENT OF SUCH LOCAL LAW MAY PROVIDE FOR  THE  IMPOSITION
OF  A HOTEL OR MOTEL TAX FOR A PERIOD OF TIME NO LONGER THAN THREE YEARS
FROM THE EFFECTIVE DATE OF ITS ENACTMENT. NOTHING IN THIS SECTION  SHALL
PROHIBIT  THE  ADOPTION  AND  ENACTMENT  OF  LOCAL LAWS, PURSUANT TO THE
PROVISIONS OF THIS SECTION, UPON THE EXPIRATION OF ANY OTHER  LOCAL  LAW
ADOPTED PURSUANT TO THIS SECTION.
  § 2. This act shall take effect immediately.